Max Mosley, the FIA president, yesterday slammed the world's leading car makers for pushing the cost of competing in formula one to unrealistic levels as he unveiled the governing body's draconian plans to slash expenditure from the start of the 2008 season.

Under regulations designed to encourage independent teams struggling against the big spenders, engines would have to last for three races before being changed and transmissions for four races. Teams would not be permitted to bring spare cars to races and testing would be curtailed. In addition there would be a single tyre supplier and aerodynamic restrictions.

Mosley said: "The world championship must remain financially viable for independent teams. Two, possibly three, manufacturers want to win by spending unlimited amounts of money. This has caused great damage to motor sport, most recently to Indy Racing League in America. We don't want it in formula one." He added that one manufacturer was "spending a sum greater than half its total annual dividend. This is unsustainable and sooner or later the shareholders will notice".

Mosley's stance signals that the governing body has run out of patience with what it sees as the manufacturers' procrastination over cutting costs. "I think it is important that we shape the future of formula one engine regulations by putting a premium on technical ingenuity and cleverness rather than teams outspending rivals on special materials."

He said "the other black hole" was that "an absurd amount of money" was spent on aerodynamic development. "Millions of dollars are being spent on what amounts to little more than a high-tech hobby for about half a dozen aerodynamicists worldwide. That has to stop."

Mosley believes that, if budgets can be pegged to about $100m (£56m) a year, more independent teams, currently daunted by the $350m spending of the top competitors, will be attracted into formula one. The most likely candidate is David Richards, the founder of the Prodrive rally preparation company, who ran the BAR-Honda team until the end of 2004. "If the changes Max is trying to bring forward come to fruition there will be room for small operations to operate," Richards told F1 Racing magazine. "If formula one carries on like it is, it won't be worth me being involved. You might as well hand the title at the start of the season to the team with the deepest pockets."

It is understood that the American team owner Roger Penske has told Bernie Ecclestone that if such budget reductions can be achieved he will be interested in fielding a formula one team, and the proposals may also strike a chord with Carlos Ghosn, the Renault chief executive, who will be publishing his long-term commercial vision for reviving the French car maker's profitability in February and is seeking to slash $300m from its global motor sport budget over the next three years.

Mosley emphasised that part of the attempt to reduce costs involves rules which allow independent suppliers to provide competitive engines at reasonable cost. He claims the alternative approach - that car manufacturers supply engines to independent teams - has failed. "A written promise to do so was given by a manufacturer in 2003; it was not kept. Nor was a subsequent undertaking to make affordable engines available in return for concessions on traction control."

As a result of this, from the start of 2008 the FIA will introduce standard electronic control units for both the engines and the gearboxes, a move which the car manufacturers have long been against."We have concluded that standardising the ECU is the only way in which we can have complete credibility in the eyes of the public when it comes to banning traction control," said Mosley. "Anything else and the public just won't believe us."

He dismissed the prospect of a breakaway series being staged by Renault, BMW, Toyota, Honda and DaimlerChrysler from 2008. "Of those five teams two will probably stop their formula one programmes and the other three will come and join us in the FIA championship," he predicted.

Cost-cutting measures

Engines

From 2008, teams will have to run cars with the same engine for three race.

Estimated saving per team £12m

Transmission systems

Teams will not be allowed to change gearboxes for four races. Weight penalties rather than grid position penalties for early replacement.